The rationale of the Balanced Score Card is based on the idea that there should be a causal link between successful implementation of key initiatives within an organization, broadly grouped according to the following “perspectives” – People and innovation; Internal Processes and Systems; Customers and Stakeholders as well as Finance. The causal links between these are outlined below:

Strategic Value

Proposition

Based on the “right story” you can set the correct objectives….

Strategic Value

Proposition

The People Management Story – The Generic Objectives

FINANCIALS 16. Optimise the cost per hire

17. Optimise the following:a. H&S Expense per FTEb. Industrial Dispute

Absence Days per FTE

14. Optimize Employee engagement and correlate with retention and productivity measures

19. Benchmark and improve Return on Human Investment Ratio

STAKEHOLDERS 12. Set targets for Customer satisfaction with quality of the workforce and availability of right competencies – set targets for improvement

13. Set Targets for Customer satisfaction with quality of HR support, advice and efficiency - set targets for improvement

14. Set targets for improving on the standing of the business as employer of choice and top performer in terms of KING III or relevant guidelines

15. Align priorities in action with the espoused values of the business – implement interventions for change – include corp citizenship and BEE

INTERNAL BUSINESS PROCESSES &SYSTEMS

6. Institute/Review/7. Update the Workforce

Planning System, based on:

a. Clear job profiles (incl competencies)

b. Supply and demandc. Link to succession and

talent management

7. Develop/review employment brand strategy, recruitment and selection system and processes and train all role players in this

8. Develop and implement retention strategy

9. Develop/review and implement performance management & learning and development system – create structure and process to support

10. Implement EVP

11. Develop/review and implement succession management that:

a. Identifies succession risks and bench strengths

b. Readiness thresholdsc. Development pathsd. EVP per position

a. Ensure cross functional integration of the total HCM value chain by implementing appropriate systems

PEOPLE AND INNOVATION 1. Define talent populations – answers the question who is our talent

2. Define What Would It Take To Succeed Here Model – answers the question of what characteristics talent have

3. & 4. Review the organization design, and structure and define:a. Talent pipelineb. The competencies (competency models) for the pipelinec. The assessment instruments to identify and develop

people in the pipeline

5. Define the desired leadership and performance climate - answers the question related to optimizing performance and contribution

PROPOSED METRICS TO TELL THE PEOPLE MANAGEMENT STORY

Perspective Metric Explanation Formula/Example

PEOPLE AND INNOVATION

Distribution of talent pool performance

Numeric, per qualification, performance distribution of employees per talent pool

% of specific variable in relation to other variables

Demographic mirroring of talent pool(s)

Representation of groups, in relation to total talent pool – consider gender, BEE, disability etc.

% of specific variable in relation to other variables

Bench strengthMetric used to gauge the number of successors are possible for any given position(s)

Example: there are 14 qualified successors for level 1 executives

Engagement Index Relative measure of employees’ engagement in their work. Survey Results

High Performer Growth Rate

Percentage of performance appraisal participants whose rating improved to a “high”rating from a previous rating that was less than “high.”

Performance Appraisal Participants Rating High / Performance AppraisalParticipants Previous Rating Non-High * 100

Readiness Ratio

Number of Potential Successors who are ready for earmarked positions in relation to total positions that require successors

Potential Successors/Total Succession Positions *100

Perspective Metric Explanation Formula/Example

INTERNAL BUSINESS PROCESSES &SYSTEMS

Average Time To Fill

Average number of days elapsed between requisition date and offer acceptance forinternal and external hires.

Total Days to Fill / Offers Accepted

Recruitment Cost Per Hire Recruitment expense per hire, including internal and external hires. Recruitment Expense / Hires

Termination Rate Voluntary/Involuntary terminations as a percentage of average headcount.

Voluntary/Involuntary Terminations / Average Headcount * 100

Avg. Termination ValueThe average value of each termination during the reporting period.

Total Termination Value / Terminations

Offer Accept Rate Offer acceptance reflect the relevance of your EVP Offers Accepted/Offers Made * 100

Internal Customer SatisfactionSurvey internal customer satisfaction with system functionality, accessibility, uptime etc.

Survey Results

Strategic Value

Proposition

Perspective Metric Explanation Formula/Example

STAKEHOLDERS

Internal Customer Satisfaction

1. Survey internal customer satisfaction with quality of the workforce and availability of right competencies set targets for improvement

2. Survey internal customer satisfaction with quality of HR support, advice and efficiency - set targets for improvement

Survey Results

Employee Engagement

Survey levels of employee engagement and correlate with retention and productivity measures – set targets to improve

Survey Results

Values Alignment Survey values alignment behaviour – set targets to improve

Survey Results

Employment brand strengthRelative measure of the attractiveness of the organization’s employment value proposition.

Survey Results

Perspective Metric Explanation Formula/Example

FINANCIALS

Cost Per HireRecruitment expense per hire, including internal and external hires.

Recruitment Expense / Hires

Operating profit per FTE Average profit generated by employees

Operating Profit t / Number of FTE’s

H&S Expense per FTE Total Health and Safety H&S Expense / FTE

Human Investment Ratio Investment in employees as a contribution to profit

(Operating Profit + Total Compensation Expense) / Total Compensation Expense

Return on Human Investment Ratio Return on investment in terms

of human resourceOperating Profit t / Total Compensation Expense

The People Management Story – The Generic Objectives

FINANCIALS 16. Optimise the cost per hire

17. Optimise the following:a. H&S Expense per FTEb. Industrial Dispute

Absence Days per FTE

14. Optimize Employee engagement and correlate with retention and productivity measures

19. Benchmark and improve Return on Human Investment Ratio

STAKEHOLDERS 12. Set targets for Customer satisfaction with quality of the workforce and availability of right competencies – set targets for improvement

13. Set Targets for Customer satisfaction with quality of HR support, advice and efficiency - set targets for improvement

14. Set targets for improving on the standing of the business as employer of choice and top performer in terms of KING III or relevant guidelines

15. Align priorities in action with the espoused values of the business – implement interventions for change – include corp citizenship and BEE

INTERNAL BUSINESS PROCESSES &SYSTEMS

6. Institute/Review/7. Update the Workforce

Planning System, based on:

a. Clear job profiles (incl competencies)

b. Supply and demandc. Link to succession and

talent management

7. Develop/review employment brand strategy, recruitment and selection system and processes and train all role players in this

8. Develop and implement retention strategy

9. Develop/review and implement performance management & learning and development system – create structure and process to support

10. Implement EVP

11. Develop/review and implement succession management that:

a. Identifies succession risks and bench strengths

b. Readiness thresholdsc. Development pathsd. EVP per position

a. Ensure cross functional integration of the total HCM value chain by implementing appropriate systems

PEOPLE AND INNOVATION 1. Define talent populations – answers the question who is our talent

2. Define What Would It Take To Succeed Here Model – answers the question of what characteristics talent have

3. & 4. Review the organization design, and structure and define:a. Talent pipelineb. The competencies (competency models) for the pipelinec. The assessment instruments to identify and develop

people in the pipeline

5. Define the desired leadership and performance climate - answers the question related to optimizing performance and contribution

PROPOSED METRICS TO TELL THE PEOPLE MANAGEMENT STORY